S-2565

AN ACT Relating to the creation of congestion relief districts; amending RCW 43.84.092, 43.84.092, and 82.08.020; adding a new chapter to Title 47 RCW; creating a new section; providing an effective date; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature recognizes that a multimodal approach to the state's transportation system is the best means of addressing transportation needs. Recently, little money has been spent on new highway projects to add capacity and lane miles to major state routes, interstates, or other freeway systems. Expansion of our highway systems is essential to all modes of transportation, as buses and vanpools need additional lanes on which to travel in order to be effective, just as passenger vehicles need additional lanes. The legislature desires to empower local regions to add lane capacity to major highways and interstates by enabling them to raise revenue to construct highway improvements which will add lanes to existing freeways or highways, or create new freeways or highways, to meet the demand from all modes of traffic. The legislature further recognizes that many of the transportation problems facing the state are too large to be addressed simply at the local level or the state level alone, and that a program whereby local areas can come together to generate revenue and partner with the state in a joint effort to construct major highway improvements is needed to achieve meaningful congestion relief. The legislature further finds that many of the improvement projects needed cross traditional city, county, and state jurisdictions, such that no current governmental boundary adequately encompasses any one corridor and that amalgamations of legislative districts, which are equal in population and yet remain small enough geographic boundaries to more closely approximate the physical locale of a highway improvement, are the best means of defining the geographic boundaries of a transportation corridor. The legislature also finds that this act will enable local taxpayers to enhance the transportation resources available to them by accelerating completion of needed state projects in their district and taking advantage of available federal funds where a match is required.

The legislature finds that there is a compelling need for the state and local governments to work together to solve major traffic congestion problems at transportation corridors, and that many transportation decisions are best made at the regional level, where transportation problems are paramount. To achieve regional congestion relief and to implement recommendation six of the blue ribbon commission on transportation final report, relating to regional transportation solutions, congestion relief districts are created. The legislature declares that it is the public policy of this state to encourage and facilitate highway improvements. It is the purpose of congestion relief districts to generate revenues for a limited period of time to assist in the financing of highway improvement projects to improve transportation mobility in congested areas.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Congestion relief district" or "district" means a quasi‑municipal corporation whose boundaries shall be one or more legislative districts which has been created by county legislative authorities and a vote of the people pursuant to this chapter to implement a congestion relief plan.

(2) "Congestion relief district planning committee" or "planning committee" means the advisory committee created pursuant to section 5 of this act to create and propose to county legislative authorities a congestion relief plan to develop, finance, and construct highway improvement projects.

(3) "Congestion relief plan" or "plan" means a plan to develop, construct, and finance a highway improvement project or projects.

(4) "Highway improvement project" means an improvement that adds a lane or lanes to a state route or federal interstate, including HOV lanes, fly-over ramps, park and ride lots, and bus pull-outs which will serve new lanes added to a state route or federal interstate.

(5) "Congestion relief area" or "designated area" means the legislative district or districts within, adjacent to, or impacted by high traffic congestion as designated by the legislature pursuant to section 3 of this act, or as redefined by a planning committee and adopted pursuant to this chapter to form the boundaries of a congestion relief district.

(6) "Legislative district" means an area designated pursuant to chapter 44.07C RCW.

(7) "Department" means the Washington state department of transportation.

NEW SECTION. Sec. 3. The legislature shall designate the legislative district or districts within, adjacent to, or impacted by traffic congestion at major transportation corridors, which shall form congestion relief areas. If the legislative districts subsequently change pursuant to redistricting, then an area shall consist of those districts within, adjacent to, or impacted by a transportation corridor, plus those districts previously within the area which remain within, adjacent to, or affected by that corridor or corridors and still have fifty percent of their original geographic area unchanged. The tax boundaries of areas subject to any new taxes imposed under this chapter shall be unaffected by subsequent redistricting.

NEW SECTION. Sec. 4. The central Puget Sound congestion relief area is hereby created and is comprised of the following legislative districts: 38, 21, 1, 44, 32, 46, 45, 36, 43, 48, 34, 11, 37, 41, 33, 47, 5, 30, 25, and 31.

NEW SECTION. Sec. 5. Congestion relief district planning committees are advisory entities which are created, convened, and empowered as follows:

(1) A congestion relief district planning committee shall be formed and composed of one representative from each legislative district within the boundaries of a congestion relief area. The three legislators elected from each legislative district within the area shall choose, by majority vote, a fourth person who is not a legislator to serve as a representative on the congestion relief planning committee. Members of a planning committee shall receive no compensation.

(2) At its first meeting, a congestion relief district planning committee shall elect officers and provide for the adoption of rules and other operating procedures. Governance of and decisions by a congestion relief district planning committee shall be by majority vote. At any time, with a two‑thirds vote of the membership of the planning committee, the planning committee may dissolve itself.

(3) A congestion relief district planning committee shall convene, from time to time and as appropriate, to create and adopt a congestion relief plan providing for the selection, development, construction, and financing of the highway improvement project or projects to be constructed. The congestion relief plan should consider transportation and land use planning. The planning committee may coordinate its activities with the department of transportation, which shall provide services, data, and personnel to assist in this planning as desired by the planning committee. In addition, the planning committee may also coordinate with such other local governments and entities that engage in transportation planning.

(4) A planning committee shall select highway improvement projects to reduce traffic congestion and will create a congestion relief plan providing for the development, construction, and financing of the highway improvement project or projects to be constructed to submit to the county legislative authorities.

(5) A congestion relief district planning committee may, as part of a congestion relief plan, recommend the imposition of some or all of the following revenue sources:

(a) A regional sales and use tax of up to 0.5 percent of the selling price, in the case of a sales tax, or value of the article used, in the case of a use tax. The tax authorized pursuant to this section shall be in addition to the tax authorized by RCW 82.14.030 and shall be collected from those persons who are taxable by the state pursuant to chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the taxing district. Motor vehicles are exempt from the sales tax imposed under this section;

(b) A vehicle license fee of up to seventy‑five dollars per vehicle registered in the district, except commercial vehicles as defined in RCW 46.04.140, per year on passenger cars, sport utility vehicles, motorcycles, motorhomes, pickup trucks, and trailers or trailing units. The department of licensing shall administer and collect this fee on behalf of a congestion relief district and remit this fee to the custody of the state treasurer, who shall distribute it as directed by a congestion relief district;

(c) A motor vehicle fuel tax of up to six cents per each gallon of motor vehicle fuel sold in the district as defined in RCW 82.36.010 and on each gallon of special fuel sold in the district as defined in RCW 82.38.020. This tax shall be collected in the same manner as state fuel taxes and remitted to the state treasurer, who shall distribute it as directed by a congestion relief district; and

(d) A commercial vehicle fee of up to one hundred fifty dollars per commercial vehicle registered in the district as defined in RCW 46.04.140. The department of licensing shall administer and collect this fee on behalf of a congestion relief district and remit this fee to the custody of the state treasurer, who shall distribute it as directed by a congestion relief district.

Taxes shall not be imposed without an affirmative vote of the people within the boundaries of the designated area on a referendum as set forth in this chapter. Revenues from these taxes may be used only to support the implementation, by a congestion relief district, of a congestion relief plan to construct highway improvement projects. A congestion relief district may contract with the state department of revenue or other appropriate entities for administration and collection of any of the taxes or fees authorized in this section.

(6) A combination of local, state, and federal revenues may be necessary to pay for highway improvement projects, and the planning committee shall consider all of these revenue sources in developing a financing and funding plan. In particular, state matching funds of up to sixty percent of the total costs as provided in section 12 of this act shall be considered.

(7) A congestion relief district planning committee shall also set the final recommended area boundaries of the proposed congestion relief district. Such boundaries may be the original area set forth by the legislature in creating the congestion relief area, or the planning committee may propose a new area which adds or deletes districts from the area originally set forth by the legislature. Boundaries must be set by legislative districts in their entirety, and the area may not include portions of legislative districts. This area shall form the boundaries of the congestion relief district for purposes of any taxes imposed under this chapter. This area shall also constitute the voting area for purposes of the ballot measure, and only those registered voters residing within this designated area shall vote on the ballot measure.

(8) Upon adoption, by majority vote, of the congestion relief plan by the planning committee, the planning committee shall immediately transmit the congestion relief plan to the county legislative authorities within the designated area. The plan shall include a proposed ballot measure to be submitted to a vote of the people within the designated area. This ballot measure shall call for the creation of a congestion relief district; specify the boundaries of the district; specify the highway improvement project or projects to be constructed; specify the anticipated timeline for completion of the highway improvement project or projects to be constructed; and specify the tax or taxes to be imposed, the anticipated duration of the taxes imposed, and the total amount of revenue estimated to be collected.

NEW SECTION. Sec. 6. A congestion relief district is a quasi‑municipal corporation which shall be formed in the following manner:

(1) The legislative authorities of the counties within the designated area shall decide by resolution whether to adopt the congestion relief plan submitted by a congestion relief planning committee and participate in the congestion relief district. This action shall be completed within sixty days following receipt of the planning committee's adopted plan.

(2) If any county opts not to adopt the plan or participate in the congestion relief district, but one or more contiguous counties do choose to continue to participate, then the planning committee may, within ninety days, redefine the congestion relief plan, as well as the area boundaries and the ballot measure to be submitted to the people, to reflect elimination of one or more counties, and submit the redefined plan to the legislative authorities of the remaining counties for their decision as to whether to continue to adopt the redefined plan and participate. This action shall be completed within sixty days following receipt of the redefined plan.

(3) The legislative authorities of the county or counties deciding to participate shall place on the ballot, at the next general election or at a special election called for this purpose, the single ballot proposition adopted by the planning committee. The county legislative authorities may not alter the plan or ballot measure adopted by the planning committee and approved by the legislative authority or authorities. Only those registered voters residing within the designated area shall vote on the ballot measure.

A simple majority of those voting within the designated area is required for approval. If the vote is affirmative, then the congestion relief district is created. Its boundaries shall consist of the designated area.

(4) If a vote on a proposition fails, then the planning committee may redefine the boundaries, the selected projects, the construction and financing plan, and the ballot measure proposition. The county legislative authorities may approve the new plan and ballot measure, and may then submit the revised proposition to the voters at the next election or a special election. No single proposition may be submitted to the voters more than twice.

If a positive vote on a proposition within two years from the date of the first election on a proposition is not achieved, then the planning committee is dissolved.

NEW SECTION. Sec. 7. Membership of a congestion relief district shall be composed of one representative from each legislative district within the congestion relief district area, and shall serve for terms of one year.

(1) A representative must reside within the legislative district which he or she will represent on the congestion relief district.

(2) No legislator, county council member, city council member, mayor, county executive, state elected official, state appointed official, local appointed official, or any other elected or appointed member to any governmental entity may serve on a congestion relief district.

(3) The initial membership of a congestion relief district created pursuant to this chapter shall be composed of the members of the congestion relief district planning committee, except that the county legislative authority in which a legislative district lies may choose to remove a member and appoint a different member in the following manner:

(a) The county legislative authority in which a legislative district lies or, in the event that a legislative district consists of more than one county or portions of counties, then the county legislative authorities from each of those counties, by agreement, may remove an initial member of the congestion relief district. In no case may a county legislative authority for a county which is not included as part of a legislative district remove a member from that legislative district.

(b) If an initial member is removed, then the three legislators from the affected legislative district shall, by majority vote, submit a list of up to two names of persons residing in the affected legislative district to the county legislative authority or authorities in which the legislative district lies. The county legislative authority or authorities shall give due consideration to the names submitted by the legislators in appointing one person from that legislative district to serve on the congestion relief district. In the event that a legislative district consists of more than one county or portions of counties, then the county legislative authorities from each of those counties shall agree upon the appointment. In no case may a county legislative authority for a county which is not included as part of a legislative district appoint a member from that legislative district.

(4) One year from the creation of the congestion relief district, and for terms of one year thereafter, members of a congestion relief district shall be appointed as follows: The three legislators from each legislative district shall, by majority vote, submit a list of up to two names of persons residing in the legislative district to the county legislative authority or authorities in which the legislative district lies. The county legislative authority or authorities shall give due consideration to the names submitted by the legislators in appointing one person from each legislative district, who resides in that district, within the designated area to serve on the congestion relief district. In the event that a legislative district consists of more than one county or portions of counties, then the county legislative authorities from each of those counties shall agree upon the appointment. In no case may a county legislative authority for a county which is not included as part of a legislative district appoint a member from that legislative district.

(5) In the event of a vacancy on the congestion relief district, that vacancy shall be filled in the same manner as provided for under subsection (4) of this section.

(6) Members of the congestion relief district shall receive no compensation, but may receive per diem and be reimbursed for travel and incidental expenses as the district deems appropriate.

NEW SECTION. Sec. 8. (1) A congestion relief district shall meet from time to time as necessary to oversee the implementation of the congestion relief plan. At its first meeting, the congestion relief district planning committee shall elect officers and provide for the adoption of rules and other operating procedures. Governance of and decisions by a congestion relief district shall be by majority vote.

(2) A congestion relief district is a body corporate and shall have the powers necessary and incidental to overseeing the implementation of a congestion relief plan approved by the voters under section 5 of this act, including but not limited to:

(a) The authority to hire no more than six employees, including a director or executive officer, a treasurer or financial officer, a project manager or engineer, legal counsel, a project permit coordinator, and clerical staff; and

(b) The authority to pay for services and enter into contracts, including professional service contracts.

(3) A congestion relief district does not have the authority to acquire, hold, or dispose of real property.

(4) A congestion relief district shall not own, operate, or maintain any ongoing facility, road, or transportation system.

(5) A congestion relief district may accept and expend or use gifts, grants, or donations.

(6) A congestion relief district may coordinate its activities with the department of transportation, which shall provide services, data, and personnel to assist as desired by the congestion relief district.

(7) A congestion relief district may not substantially vary the congestion relief plan or the projects to be constructed. Minor variations or deviations as to the timeline, project plans or right of way, and up to five percent of the total costs may be made, but in no case may the district add to or delete from the plan projects to be constructed. Major revisions to the plan, including the addition or deletion of projects to be constructed, must be submitted first to the county legislative authorities and then a vote of the people in the same manner as provided for the initial plan under this chapter.

NEW SECTION. Sec. 9. The congestion relief district, by resolution, shall designate a person having experience in financial or fiscal matters as treasurer of the district. The district may designate the treasurer of a county within which the district is located to act as its treasurer. Such a treasurer shall possess all of the powers, responsibilities, and duties the county treasurer possesses related to investing surplus funds. The district shall require a bond with a surety company authorized to do business in the state of Washington in an amount and under the terms and conditions the district, by resolution, from time to time finds will protect the district against loss. The premium on any such bond shall be paid by the district.

All district funds shall be paid to the treasurer and shall be disbursed by the treasurer only on warrants issued by district upon orders or vouchers approved by the district.

The treasurer shall establish a special fund, into which shall be paid all district funds, and the treasurer shall maintain such special accounts as may be created by the district into which shall be placed all money as the district may, by resolution, direct.

If the treasurer of the district is the treasurer of a county, all district funds shall be deposited with the county depositary under the same restrictions, contracts, and security as provided for county depositaries. If the treasurer of the district is some other person, all funds shall be deposited in such bank or banks authorized to do business in this state that have qualified for insured deposits under any federal deposit insurance act as the district, by resolution, shall designate.

The district may by resolution designate a person having experience in financial or fiscal matters, as the auditor of the district. Such auditor shall possess all of the powers, responsibilities, and duties related to creating and maintaining funds, issuing warrants, and maintaining a record of receipts and disbursements.

The district may provide and require a reasonable bond of any other person handling moneys or securities of the district, but the district shall pay the premium on the bond.

NEW SECTION. Sec. 10. The legislature recognizes that it may be prudent for certain congestion relief highway improvement projects to be financed over time through the issuance of bonds. By act of the legislature, the state may, pursuant to chapter 47.10 RCW, issue bonds to finance all or part of the total costs of highway improvement projects being constructed by a congestion relief district. The state and a congestion relief district may enter into a contract or arrangement by which a congestion relief district shall repay its portion, if any, of any outstanding bond debt issued by the state. A congestion relief district shall remain liable to the state for the payment of its portion of any debt incurred, including interest, but only from amounts collected from taxes authorized in this chapter.

Alternatively, notwithstanding RCW 39.36.020(1), a congestion relief district may contract indebtedness or borrow money to pay for highway improvement projects in an amount not exceeding one and one-half percent of the value of the taxable property within the boundaries of the region, as long as the total indebtedness of the region does not exceed five percent of the value of the taxable property in it. The bonds must be issued and sold in accordance with chapter 39.46 RCW, and the bond proceeds must be used solely to pay for highway improvement projects and any start-up costs advanced by the state for expenses of the district prior to the referendum. The term "value of the taxable property" has the meaning set forth in RCW 39.36.015.

NEW SECTION. Sec. 11. (1) The department shall create a division of dedicated staff and services whose sole responsibility is to coordinate the design, preliminary engineering, permitting, financing, and construction of projects under consideration by a congestion relief district planning committee or which are part of a congestion relief plan being implemented by a congestion relief district.

(2) All of the powers granted the department pursuant to Title 47 RCW relating to highway construction may, at the request of a congestion relief district, be utilized to implement a congestion relief plan and construct highway improvement projects.

NEW SECTION. Sec. 12. (1) A congestion relief district is eligible for state matching funds of up to sixty percent of the total costs of a highway improvement project or series of projects being constructed by a congestion relief district. A congestion relief district need not utilize state matching funds, and nothing in this section may be construed as prohibiting a congestion relief district from funding and paying all or more than forty percent of the total costs of a highway improvement project or series of projects being constructed.

(2) The congestion relief district matching account is hereby created within the state treasury. The congestion relief district matching account shall be administered by the state treasurer. Funds appropriated by the legislature as matching state money for a highway improvement project or series of projects being constructed by a congestion relief district shall be deposited into this account. The purpose of this account is to serve as an account from which payments for highway improvement projects being constructed by a congestion relief district may be made. Payments from this account may be made as follows:

(a) The state may pay for its share of up to sixty percent, including federal funds, of the total costs of a highway improvement project or series of projects being constructed by a congestion relief district from funds appropriated to this account by the legislature for this purpose; and

(b) A congestion relief district may also transfer money to this account to pay for its share of any highway improvement projects being constructed by the state on behalf of that congestion relief district, or for payment of any bonds, debt, or other financing incurred by the state on its behalf to construct such projects. The state may then use these transfers to make payments on the district's behalf.

All moneys deposited in the congestion relief district matching account shall be invested by the state treasurer. Funds within the congestion relief district matching account shall be used solely to pay for highway improvement projects being constructed by a congestion relief district.

NEW SECTION. Sec. 13. The department or district may use the design‑build procedure for projects developed by a congestion relief district. As used in this section "design‑build procedure" means a method of contracting under which the department or district contracts with another party for such party to both design and build the structures, facilities, and other items specified in the contract.

NEW SECTION. Sec. 14. Within thirty days of the completion of the construction of the project or series of projects forming the congestion relief plan, the district shall terminate day‑to‑day operations and exist solely as a limited entity which oversees the collection of revenue and the payment of any debt service or financing still in effect, if any. Any taxes imposed pursuant to an approved plan shall terminate when the financing or debt service on the project or series of projects constructed is completed and paid, thirty days from which point the district shall dissolve itself and cease to exist. If there is no debt outstanding, then the district shall dissolve within thirty days from completion of construction of the project or series of projects forming the congestion relief plan.

NEW SECTION. Sec. 15. Any highway improvement project constructed pursuant to this chapter becomes and remains the property of the state of Washington.

Sec. 16. RCW 43.84.092 and 2000 2nd sp.s. c 4 s 5 are each amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

(3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the congestion relief district matching account, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system plan 2 account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 17. RCW 43.84.092 and 2000 2nd sp.s. c 4 s 6 are each amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the congestion relief district matching account, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 18. RCW 82.08.020 and 2000 2nd sp.s. c 4 s 1 are each amended to read as follows:

(1) There is levied and there shall be collected a tax on each retail sale in this state equal to six and five-tenths percent of the selling price.

(2) There is levied and there shall be collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. The revenue collected under this subsection shall be deposited in the multimodal transportation account created in RCW 47.66.070.

(3) There is levied and there shall be collected an additional tax on each retail sale of a motor vehicle to a resident of a congestion relief district under chapter 47.‑‑ RCW (sections 1 through 15 of this act) equal to one-half percent of the selling price. The revenue collected under this subsection must be distributed to the appropriate congestion relief district: PROVIDED, That this subsection does not apply to residents outside of a congestion relief district, or residents of a congestion relief district which has not imposed a sales and use tax equal to one-half percent as provided under chapter 47.‑- RCW (sections 1 through 15 of this act).

(4) The taxes imposed under this chapter shall apply to successive retail sales of the same property.

((~~(4)~~)) (5) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

NEW SECTION. Sec. 19. Section 16 of this act expires March 1, 2002.

NEW SECTION. Sec. 20. Section 17 of this act takes effect March 1, 2002.

NEW SECTION. Sec. 21. Sections 1 through 15 of this act constitute a new chapter in Title 47 RCW.

NEW SECTION. Sec. 22. If any provision of this act or its application to any person or circumstance is held invalid, then the entire act shall be null and void and of no force or effect.